Bengaluru, Feb 26: In the next four months, Alibaba-backed Paytm Mall hopes to have all 150,000 of Samsung’s authorised retailers in India on its platform. The move, it says, will help the e-commerce entity become the single largest seller of mobile telephony devices in the country, a distinction now held by rival Flipkart.
Amit Sinha, chief operating officer of Paytm Mall, says brands have so far been unable to ignore e-commerce players but at the same time had to face the wrath of their offline channels as online ones engaged in deep discounting. With Paytm Mall, the offers you see online are the same ones you get offline, he assured.
“Brands like Samsung are very concerned about the discounting. They want to control the market operating price because at the end of the day, 80% of (their) sales happen through the offline channel. Brands were getting hammered by their offline partners, who were asking them to boycott online players,” said Sinha.
Paytm Mall also partners with small offline retailers. It asks them to route purchases by customers through its platform; in return it will drive traffic from the web to their stores. The upside is that offline retailers will now be able to offer deals and discounts to compete with Flipkart and Amazon as Paytm Mall burns cash to catch its rivals.
The targets are ambitious. Paytm Mall wants the gross merchandise value (GMV) of products sold on its platform to cross $10 billion next year, a claimed three-time jump from the $3 bn in GMV during the past year. All of these will be driven through offline retailers and Paytm Mall is taking the help of brands to sign these up.